- Wealth tax in Neuchâtel starts at +50,000 CHF (net wealth)
- The tax rate is progressive and varies from 2.25‰ to 3.6‰
- Taxable assets are reduced by authorized debts and deductions.
Who is subject to wealth tax in Neuchâtel?
Persons domiciled in the canton
Any person residing or having their tax domicile in the canton of Neuchâtel is subject to tax on their entire worldwide net wealth, as soon as their net wealth exceeds CHF 50,000 during the calendar year.
Assets located outside the canton or abroad are taken into account only for the calculation of the tax rate, but are not directly taxable in the canton.
Persons not domiciled in the canton
The owners of real estate located in the canton of Neuchâtel or persons enjoying such property (usufruct, right of habitation) are also subject to wealth tax.
Items subject to wealth tax
- 1. Personal property
- Bank and postal accounts
- Savings books, current accounts, term deposits and other bank balances.
- Valued at face value on December 31 of the fiscal year.
- Securities and financial investments
- Shares, bonds, investment fund units, savings bonds.
- Listed securities: valued at the official price on December 31.
- Unlisted securities: valued at intrinsic value.
- Redeemable life insurance
- Taxed on the surrender value at December 31, including policyholder dividends.
- Cryptocurrencies
- Valued at market value on December 31.
- Jewelry, precious objects, precious stones and metals:
- Appraised at market value.
- 2. Real estate
- Real estate in Switzerland and abroad
- Appraised at their cadastral value or their market value if the latter is more representative.
- Agricultural or commercial properties can be valued at their yield value.
- Usufruct:
- Taxation is carried out by the usufructuary, based on the value of the assets.
- 3. Business assets
- The assets of a sole proprietorship or permanent establishment (commercial or agricultural) are taxed according to their net book value.
- 4. Rights and claims
- Private loans and receivables: valued at face value.
- Assets secured by mortgage: taxed at face value.
- 5. Assets located abroad
- Real estate and movable assets held abroad are not directly taxed in Neuchâtel. However, their value is included in determining the tax rate applicable to taxable assets in the canton.
Wealth tax deductions in the canton of Neuchâtel
Debts attributable to assets in the canton of Neuchâtel
To determine net taxable assets, the taxpayer's debts can be deducted from gross assets.
- 1. Private debt
- Private loans
- Amounts borrowed from individuals for personal or business needs.
- Valued at face value.
- Consumption loans
- Includes loans taken out to purchase goods or services.
- 2. Mortgages payable
- Mortgages
- Mortgages taken out to finance the acquisition, construction or renovation of real estate.
- The value of the mortgage is deducted from the gross value of the property concerned.
- 3. Bank overdrafts
- Negative balances on bank accounts or personal lines of credit.
- 4. Trade payables
- Professional and agricultural loans
- For the self-employed or entrepreneurs, debts related to the operation of a professional or agricultural activity are also chargeable.
When calculating wealth tax, certain deductions can be applied to reduce the tax base.
Additional deductions
Certain deductions can be applied to reduce the wealth tax burden in the canton of Neuchâtel.
For example, donations to charitable organizations and insurance payments, such as health or life insurance premiums, can also be taken into account within certain limits.
Calculation of net assets
Net taxable wealth is the difference between the taxpayer's gross assets and qualifying debts.
For example, if a taxpayer owns
- Gross assets: CHF 800,000 (real estate: CHF 600,000, bank accounts and securities: CHF 200,000).
- Liabilities: CHF 300,000 (mortgage and loans).
- Deductions: CHF 1,000 (donation to a charitable organization).
- Net taxable wealth: 499'000 CHF
Wealth tax scale in Neuchâtel
- Net wealth
- Due tax
- Tax rate (‰)
- 0 to 50,000 CHF
- 50,001 to 200,000 CHF
- 200,001 to 350,000 CHF
- 350,001 to 500,000 CHF
- 0 CHF
- 450 CHF
- 1,050 CHF
- 1,800 CHF
- 0.00
- 3.00
- 4.00
- 5.00
Assets in excess of CHF 500,000 are taxed at a rate of 3.6‰.
It is important to note that tax is paid in instalments. Any amount in excess of one bracket is taxed at the rate of the next bracket.
The basic tax thus calculated is then multiplied by an annual coefficient set by the Grand Council, which determines the final amount of tax due.
